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NOR GUIDEPOST MONTESSORI
MCKINNEY, TX (DALLAS MSA)
A 20-YEAR ABSOLUTE NNN LEASE TO A CORPORATE TENANT IN DALLAS MSA
2
27,496 VPD
ELDORADO PARKWAY
WILLOW GROVE BOULEVARD
CUSTER BRIDGES HUNTERS
CREEKLAWLER
PARK
DR. J.M. OGLE ELEMENTARY
SCHOOL
XPLOR PRESCHOOL & SCHOOL AGE
CARE
CHIROPRACTIC WELLNESS
CENTER
DALLAS FORT WORTH
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
Retail Aerial
Retail Aerial
10,246VPD
27,496 VPD
ALMA ROAD
EVANS MIDDLE SCHOOL
JOHN AND JUDY GAY
PUBLIC LIBRARY
EDRIS ELLIOTT
ELEMENTARY SCHOOL
WOLFORD ELEMENTARY
SCHOOL
ELDORADO
PARKWAY
80,000 SF FITNESS AND COMMUNITY
CENTER
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 3
TOTAL 1-MILE 3-MILES 5-MILES
Residential 14,658 120,860 238,222
Average Household Incomes
$135,205 $128,626 $132,138
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
GUIDEPOST MONTESSORI
6.75%CAP
$3,644,000PRICE
7508 ELDORADO PKWY, MCKINNEY, TX 75070
LEASABLE SF8,815 SF
LEASE TYPECorporate NNN
NOI$246,000
LAND AREA1.43 Acres
YEAR BUILT2017
LEASE TERM20 Years (17.5 remaining)
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
20-year absolute NNN lease (17.5 years left)
Leased to largest corporate Montessori Operator in U.S.
Internet resistant / Amazon-proof corporate tenant
2.50% annual rent increases and corporate guaranty
Affluent Dallas suburb with average HH incomes of $135,205 within 1-mile radius of subject property
Investment Overview
4
5
Investment Highlights
CAPITAL PACIFIC is pleased to present the opportunity to acquire Guidepost Montessori McKinney, a premier single tenant investment in the affluent Dallas suburb of McKinney, TX. The subject property features a 20-year NNN lease (17.5 years left) to Guidepost Montessori, the largest corporate Montessori school operator in the U.S. The absolute NNN lease structure features 2.50% annual rental increases and two 5-year options to extend the lease after the primary term. The lease is guaranteed by Guidepost’s parent company, Higher Ground Education (HGE), which is valued at $100M and operates 39 Guidepost locations across the country, focused on affluent and dense residential demographics.
Contact the team
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
JOHN ANDREINIjandreini@capitalpacific.comPH: 415.274.2715CA DRE# 01440360
JUSTIN SHARPjsharp@capitalpacific.comPH: 415.274.7392CA DRE# 01895013
5
GUIDEPOST MONTESSORI HAS 39 LOCATIONS IN 9 STATES AND 3 COUNTRIES
THE SUBJECT PROPERTY is located in McKinney, TX, a high-income suburb within the Dallas-Fort Worth MSA, the largest inland metro area in the U.S. It features hard corner visibility on Eldorado Parkway, one of the main commercial thoroughfares in McKinney. The trade area boasts average household incomes over $132,000 within 5-miles and $135,000 within 1-mile of the property. As a result of these affluent demographics, schools in the area are able to command very high tuitions. Additionally, the property is surrounded by a host of synergistic commercial properties, including national retailers like Kroger, CVS, Target, and Lowe’s, as well as the Apex Centre, a community center and fitness & recreation facility for children and adults which serves the entire McKinney community.
IN CONJUNCTION WITH TX LICENSED BROKER: Steve SielingAzur Commercial Capital, LLC214.888.8262
121
121
399
5
5
380380
380
75
75
EL DORADO PARKWAY
ALM
A R
OA
D
ALMA
ROAD
EL DORADO PARKWAY INDUSTRIAL
BOULEVARD
EL DORADO
PARKWAY
CU
STER
RO
AD
CU
STER
RO
AD
77,320 VPD
10,246 VPD
METHODIST MCKINNEY HOSPITAL
MEDICAL CENTER CRAIG RANCH
MEDICAL CITY
HOSPITAL
BAYLOR SCOTT
& WHITE MEDICAL CENTER
MCKINNEY NATIONAL AIRPORT
SCHOOL
SCHOOL
MIDDLE SCHOOL
MIDDLE SCHOOL
MIDDLE SCHOOL
HIGH SCHOOL
HIGH SCHOOL
CITY OF MCKINNEY
GOLF COURSE
GOLF COURSE
GOLF COURSE
GOLF COURSE
GOLF COURSE
SPORTS COMPLEX
ELEMENTARY SCHOOL
ELEMENTARY SCHOOL
ELEMENTARY SCHOOL ELEMENTARY
SCHOOL
ELEMENTARY SCHOOL
ELEMENTARY SCHOOL
ELEMENTARY SCHOOL
ELEMENTARY SCHOOL
ELEMENTARY SCHOOL
ELEMENTARY SCHOOL
MIDDLE SCHOOL
ELEMENTARY SCHOOL
30,300 VPD
160,420 VPD
27,496 VPD
6
Aerial
DALLAS(32 MILES)
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
SAM RAYBURN TOLLWAY
EL DORADO PARKWAYEL DORADO PARKWAY
CU
STER
RO
AD
CU
STER
RO
AD
ALM
A RO
AD
ALM
A
DRIV
E
SAM RAYBURN TOLLWAY
STONEBRIDGE RANCHRUSSWOOD
ACRES
ROSE GARDEN
FRISCOHEIGHTS
HUNTERS CREEK
THE GROVE FRISCO
ESTATES AT SHADDOCK
PARK
SHEPARDS HILL
TURNBRIDGE MANOR
RIDGEVIEW RANCH
TWIN CREEKS
WALNUT SPRINGS
THE LANDINGSWATERFORD
AVONDALE
STAR CREEK
COURTNEY MANOR FAIRWAYS OF
RIDGEVIEW
MANSIONS AT RIDGEVIEW
RICHWOODS
STANRIDGE
SORANO
CUSTER BRIDGES
STONELAKE ESTATES
WEST
CUSTER CREEK FARMS
THE ARBORS AT WILLOW
BAY
VILLAGES AT WILLOW
BAYPANTHER
CREEK ESTATES
PRAIRIE VIEW
MIRAMONTE
RIDGECREST
RIDGEVIEW AT PANTHER
CREEK
WINDING CREEK ESTATES
STONEGATE
CRAIG RANCH
EAGLE RIDGE
PINE RIDGE ESTATES
WILLOW BROOK
FALCON CREEK
ARBOR GLEN
WINDING CREEK
QUAIL CREEK
CORONADO VILLAGE
ELDORADO
THE VINEYARDS
THE CASCADES
STONE HOLLOW
WESTMINSTER AT CRAIG RANCH
DALLAS(32 MILES)
77,320 VPD
33,770 VPD
10,246 VPD
27,496 VPD
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
7
Surrounding Residential Aerial
8
Subject Property
9
Surrounding Retail
10
Income & Expense
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 10
PRICE $3,644,000 Price Per Square Foot: $413.39
Capitalization Rate: 6.75%
Total Rentable Area (SF): 8,815
STABILIZED INCOME PER SQUARE FOOTScheduled Rent $27.91 $246,000
Effective Gross Income $27.91 $246,000
LESS PER SQUARE FOOTTaxes NNN $0.00
Insurance NNN $0.00
Total Operating Expenses NNN $0.00
EQUALS NET OPERATING INCOME $246,000
11
Rent Roll
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
TENANT INFO LEASE TERMS RENT SUMMARY
TENANT NAME SQ. FT. CURRENT RENT
MONTHLY RENT
YEARLY RENT
MONTHLY RENT/FT
YEARLY RENT/FT CAP RATE
Guidepost McKinney 8,815 2/1/2020 1/31/2021 $246,000 $20,500 $246,000 $2.33 $27.91 6.75%
2.50% annual increases through all primary and option term years
Year 5 $21,013 $252,150 $2.38 $28.60 6.92%
Year 6 $21,538 $258,454 $2.44 $29.32 7.09%
Year 7 $22,076 $264,915 $2.50 $30.05 7.27%
Year 8 $22,628 $271,538 $2.57 $30.80 7.45%
Year 9 $23,194 $278,327 $2.63 $31.57 7.64%
Year 10 $23,774 $285,285 $2.70 $32.36 7.83%
Year 11 $24,368 $292,417 $2.76 $33.17 8.02%
Year 12 $24,977 $299,727 $2.83 $34.00 8.23%
Year 13 $25,602 $307,221 $2.90 $34.85 8.43%
Year 14 $26,242 $314,901 $2.98 $35.72 8.64%
Year 15 $26,898 $322,774 $3.05 $36.62 8.86%
Year 16 $27,570 $330,843 $3.13 $37.53 9.08%
Year 17 $28,260 $339,114 $3.21 $38.47 9.31%
Year 18 $28,966 $347,592 $3.29 $39.43 9.54%
Year 19 $29,690 $356,282 $3.37 $40.42 9.78%
Year 20 $30,432 $365,189 $3.45 $41.43 10.02%
Option 1 21 25 2.5% ann. inc. $31,193 $374,318 $3.54 $42.46 10.27%
Option 2 26 30 2.5% ann. inc. $35,292 $423,507 $4.00 $48.04 11.62%
TOTALS: 8,815 $246,000 $20,500 $246,000 $2.33 $27.91
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Lease Abstract
BASE RENT
DATE RANGE MONTHLY RENT ANNUAL RENT
2/1/2017 $19,036 $228,4352/1/2018 $19,512 $234,1462/1/2019 $20,000 $240,0002/1/2020* $20,500 $246,000
*2.50% annual increases during primary and option terms
OPTION RENTS
DATE RANGE MONTHLY RENT ANNUAL RENT
#1. 21 - 25 $31,193 $374,318 #2. 26 - 30 $35,292 $423,507
RENT
TENANT Guidepost MontessoriLEASE SIGNED BY Guidepost A LLC (Corporate)LEASE TYPE Corporate NNNTERM 20 Years (17.5 years remaining)RENT COMMENCEMENT 2/1/2017OPTIONS Two 5-year options
1212
TAXESDuring the Term of this Lease, Tenant shall pay the Taxes directly to the appropriate taxing authorities.
INSURANCETenant agrees during the Term of this Lease, to maintain at its sole cost and expense, all insurance costs, including: commercial general liability insurance, worker’s compensation insurance, casualty coverage, business interruption insurance, and an umbrella liability policy.
UTILITIESTenant shall arrange with and pay directly to such public utility companies for all utilities which it uses on the Premises.
TENANT’S OBLIGATIONSTenant is fully responsible, at its sole cost and expense, for all aspects of the repair, maintenance, replacement, and upkeep of all aspects and portions of the Premises, including all structural, foundation, roof, electrical, and plumbing and HVAC systems, landscaping, and pest control.
LANDLORD’S OBLIGATIONSZero expense or maintenance obligations.
EXPENSES
The details contained within the Lease Abstract are provided as a courtesy to the recipient for purposes of evaluating the Property’s initial suitability. While every effort is made to accurately reflect the terms of the lease document(s), many of the items represented herein have been paraphrased, may have changed since the time of publication, or are potentially in error. Capital Pacific and its employees explicitly disclaim any responsibility for inaccuracies and it is the duty of the recipient to exercise an independent due diligence investigation in verifying all such information, including, but not limited to, the actual lease document(s).
ELD
ORA
DO
PA
RKW
AY
EL D
ORA
DO
PA
RKW
AYEL
DO
RAD
O P
ARKW
AY
S STONEBRIDGE DRIVE
S STONEBRIDGE DRIVE
ALMA ROAD
METHODIST MCKINNEY HOSPITAL
APEX CENTER
ALMA ROAD
FENCED PLAYGROUND
MONUMENT SIGN
NOT A PART
14,700 VPD
10,246 VPD
27,496 VPD
Site Plan
13This site plan is a rendering that has been created based on sources we believe to be reliable. We make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
19SPACES
8,815RENTABLE SF
1.43ACRES
14
Tenant Overview
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
Tenant Overview
Guidepost Montessori is the largest Montessori in the United States. They have 39 schools across the country including Palo Alto, Laguna Hills, Chicago, Brooklyn, Dallas, and Raleigh to name a few. What separates Guidepost from other schools is that they provide education from ages 10 weeks through age 18, children are able to learn through a sequenced education starting with day care, through elementary school, middle school, then high school. The value to parents and children is that there is a single source of education and relationships that are built through a child’s development period, which is a model that developmentally provides better student outcomes than single age education.
Higher Ground Education, the parent company of Guidepost Montessori, is based in Lake Forest, California, and is modernizing and mainstreaming the Montessori movement using cutting edge educational technology and educational programs that are child centered. Jeff Bezos (Founder and CEO of Amazon) recently committed $2 billion to Montessori based education.
They have backing from Learn Capital, the largest venture capital group in the educational technology space and the Walton Foundation (Wal-Mart Founder) demonstrating the credibility of the organization.
ABOUT GUIDEPOST MONTESSORI
LOCATIONS IN 9 U.S. STATES AND 3 COUNTRIES39
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Demographics
POPULATION
1-MILE 3-MILES 5-MILES
2010 11,021 81,524 162,855
2019 14,658 120,860 238,222
2024 16,641 138,610 272,881
2019 HH INCOME
1-MILE 3-MILES 5-MILES
Average $135,205 $128,626 $132,138
MCKINNEY
FORT WORTH (56 MILES)
THE AVERAGE HOUSEHOLD INCOME WITHIN A 1-MILE RADIUS
IS OVER $135K
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
15
DALLAS (32 MILES)
TOP EMPLOYERS IN DFW METROPLEX
EMPLOYER # OF EMPLOYEES
AMR (American Airlines) 24,700
Bank of America 20,000
Texas Health Resources 19,230
Dallas Independent School District 18,314
Baylor Health Care System 17,097
DALLAS IS A MAJOR TRANSPORTATION HUB with four major interstate highways converging in the city and a fifth interstate loop around it, a major inland port, railroad lines, the Dallas/Fort Worth International Airport and Dallas Love Field Airport. Dallas-Fort Worth’s vast transportation infrastructure connects residents and businesses. In 2017, the Dallas-Fort Worth metropolitan area ranked as the fifth-largest export market in the U.S., with a real export value of $58.4 billion according to Brookings Institution's Export Scan.
MCKINNEY, TEXAS
MCKINNEY, a city in Collin County, is a northern suburb of Dallas. Dallas is located in northeastern Texas, is the 9th largest city in the United States and the 3rd largest in Texas with a population of 1,341,075 residents. Dallas is the home to major educational institutions such as UT Southwestern Medical Center, Southern Methodist University, and the Dallas campus of the University of North Texas. The Dallas Arts District is one of the largest arts districts in the nation, with 20 square blocks and 68 acres of arts, entertainment and culture. The district is home to numerous museums, music venues, theaters, stunning modern architecture, and performing arts, hosting Dallas’ world-class opera, theater and dance. 16
Location Overview
7.4 MILLION
DALLAS MSA POPULATION (ESTIMATED)
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
DOWNTOWN DALLAS
Houston MSA
DALLAS
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 17
DALLAS - FORT WORTH MSATHE DALLAS/FORT WORTH METROPLEX (Dallas/Fort Worth, DFW) is a dynamic 12-county region made up of Dallas, Fort Worth, and another 150 municipalities. The Dallas area is the largest metropolitan area in Texas and the fourth largest in the United States spanning an area of 9,286 square miles with a population of approximately 6.8 million residents. Dallas-Fort Worth was one of the fastest growing metropolitan areas in the nation from 2000 to 2014, adding 1.6 million people for a 32% growth rate. By the year 2040, over 10.5 million people are projected to be living in the Metroplex.
The Dallas—Fort Worth metropolitan area is home to eight major league sports teams: the Dallas Cowboys (NFL), Dallas Mavericks (NBA), Texas Rangers (MLB, Dallas Stars (NHL), FC Dallas (MLS), Dallas Wings (WNBA), the Dallas Rattlers (MLL), and XFL Dallas (Xtreme Football League).
GENERAL STATS#1 LARGEST INLAND METRO AREA
4TH LARGEST METRO AREA
#11 U.S. NEWS BEST PLACES TO RETIRE
48.8 MILLION ANNUAL VISITORS
3.7 MILLION JOBS IN THE METRO AREA
#1 FORBES 2018 BEST CITY FOR JOBS
#18 U.S. NEWS & WORLD REPORTBEST PLACES TO LIVE
SAMANTHA TULLIO
We’d love to hear from you.
CAPITAL PACIFIC COLLABORATES. CLICK HERE TO MEET OUR SAN FRANCISCO TEAM:
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
JOE CACCAMOJOHN ANDREINI
JUSTIN SHARP
DAVE LUCAS
RICK SANNER JACK NAVARRA
CHRIS KOSTANECKIZEB RIPPLE CHRIS PETERS
JOHN ANDREINIjandreini@capitalpacific.comPH: 415.274.2715CA DRE# 01440360
JUSTIN SHARPjsharp@capitalpacific.comPH: 415.274.7392CA DRE# 01895013
IN CONJUNCTION WITH TX LICENSED BROKER: Steve SielingAzur Commercial Capital, LLC214.888.8262
ZANDY SMITH
JUSTIN STARK SAMANTHA TULLIO
Copyright © 2019 Capital Pacific Partners
SFO. PDX. SEA. CAPITALPACIFIC.COM
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